According to Uber, today, there are currently more than 900,000 Uber drivers in the US. That’s an astounding number, and most importantly for dealers, as every driver needs a car.
However, people who decide to enter the ride hailing business don’t always have the best credit, leaving them unable to buy a vehicle, and therefore, unable to work. It’s a vicious cycle; however, Car as a Service allows people to break out of this and enables their productivity and money earning potential.
Shared Mobility allows people to start work with a credit card hold, and platforms can often direct finances so that Shared Mobility payments are deducted on a “pay as you earn” basis. What this means is that as a new Uber or Lyft driver earns money, their expenses are automatically paid, thus building credit for themselves.
It also creates a whole bunch of advantages for dealers:
- A pool of creditworthy buyers if they choose to purchase a car later on. Many buyers who use Shared Mobility to start their ride hailing career become credit enabled in just 90 days, which easily facilitates a car purchase.
- Customer Loyalty. Anyone who has been helped out of a seemingly hopeless financial situation will remain very loyal. A loyal customer for life is what dealers dream about.
- Dealers can leverage Ride Hailing. Every dealer knows that running and crewing service shuttles are a very significant expense. Dealers can utilize their new Shared Mobility customers to do ride hailing for service customers as part of a pay-as-you-earn program, creating a benefit and loyalty cycle for everyone.
- Cash flow from old inventory. All dealers have had a situation where a car has sat on the lot and not sold. Such vehicles can be put to work in a Shared Mobility fleet, generating revenue to help offset depreciation, while still being available for a buyer; and potentially, the ride hailing driver might be just that customer.
As can be seen, these are not just advantages for a dealer, but an opportunity to create a symbiotic relationship between dealer and customer that takes customers from a vicious financial cycle to a virtuous Shared Mobility cycle. It’s a big ‘win-win’ for everyone and an immediate opportunity for today that dealers can take advantage of on a Shared Mobility platform.
Author: Mark Thomas, VP of Marketing and Alliances, Ridecell